SOURCE: Frontera Copper Corporation

May 05, 2008 11:14 ET

Frontera Copper Comments on Recent Developments Affecting Its Primary Supplier of Sulfuric Acid and Announces Conference Call to Report on First Quarter 2008 Results

TORONTO and PHOENIX, AZ--(Marketwire - May 5, 2008) - Frontera Copper Corporation (TSX: FCC) (TSX: FCC.NT) (TSX: FCC.NT.A) today provided comments on recent developments affecting the primary sulfuric acid supplier to its Piedras Verdes operation. The supplier has announced a shutdown of one of its mining operations due to an ongoing labor dispute. The mine is a primary source of concentrates to a smelter which produces the sulfuric acid supplied to Piedras Verdes.

Under the terms of an existing long-term acid supply agreement, the supplier has made every effort to provide the Piedras Verdes operation with a large portion of its acid requirements since the strike began in July 2007. Furthermore, based on recent discussions with the supplier, Piedras Verdes believes that sulfuric acid deliveries will remain at levels comparable to those of recent months for the foreseeable future.

In a further response to both the high cost and the potential for shortfalls in acid availability in the spot market, a new ore placement and leaching strategy has been implemented by the operation, which is intended to maximize the effectiveness of the acid expected to be received from its primary supplier. Additional information about this strategy will be provided when the Company announces its first quarter 2008 results on May 15.

Alan Edwards, CEO and President of Frontera Copper, said, "We are proactively taking steps to maximize our cash flow in light of the continuing labor issues at our major supplier of sulfuric acid. We are confident that these issues will ultimately be resolved and that deliveries of acid to our operation will be restored to the levels necessary for us to achieve full production."

Frontera Copper will hold a conference call to report on first quarter 2008 results on Thursday, May 15, at 11:00 am EDT. The conference call will be hosted by Alan Edwards, President and Chief Executive Officer. He will be joined by Dave Peat, Vice President and Chief Financial Officer; Tim Swendseid, Vice President of Engineering and Rod Prokop, Vice President, Investor Relations.

Those wishing to participate should dial 416-695-9745 or toll free 800-766-6630. A replay of the call will also be available through Thursday, May 29, by dialing 416-695-5800 or toll free 800-408-3053 and entering passcode 3260517.

Information in this news release that is not current or historical factual information may constitute forward-looking information or statements within the meaning of applicable securities laws. Implicit in this information, particularly in respect of statements as to future operating results and economic performance of the Company, and resources and reserves at the Piedras Verdes operations, are assumptions regarding projected revenue and expense, copper prices and mining costs. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including risks relating to general economic conditions and mining operations, and could differ materially from what is currently expected. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • For further information, please contact:
    Rodney Prokop
    Vice President, Investor Relations
    (602) 424-5483
    Email Contact

    Alan Edwards
    President and Chief Executive Officer
    (602) 424-5488